Well, I am as confused as you are. But there are multiple rumors floating around that points in this direction.
The iPhone X received the best sales in the history of iPhone. There is nothing there to suggest that it has done poorly in terms sales or other aspects for that matter. In fact, Apple for a long time after the launch of the X was finding it difficult to meet the demand. But the inability to meet the demand is not a reason to discontinue a product. Apple must have a very solid reason for it.
I would like to think that all the rumors are wrong and that the real reason why Apple wants to discontinue the X is to introduce a new 2018 iPhone line. So we would get the iPhone SE2 and definitely three new iPhones that will succeed the iPhone X.
This would make sense since the 2018 iPhone lineup would be an upgrade of the iPhone X, and so no one would want to purchase an iPhone X anymore. Either buy the economical iPhone SE2 or buy the flagship 2018 iPhone device available in 3 options.
Apple wants a refresh for its iPhone range in 2018. It is quite obvious. This would mean faster chips and new designs.
Hence the removal of iPhone X is inevitable. Not for the wrong reasons, but rather to make space for something more innovative and disruptive.
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